NEA, EPF sign Rs 10 billion-loan agreement for Upper Tamakoshi

Nepal Electricity Authority (NEA) on behalf of Upper Tamakoshi Hydropower Company today signed a loan agreement with Employees Provident Fund (EPF). NEA Executive Director and Chairman of Tamakoshi Hydropower Company Ltd Dr Jeevendra Jha and EPF Chief Administrator Ramesh Kumar Bhattarai signed the Rs 10-billion loan agreement to fund the 456-MW hydro power project.

The other lenders Nepal Telecom (NT), Rastriya Beema Sansthan (RBS), and Citizen Investment Trust (CIT) are planning to sign the lending agreement soon. Apart from EFF's Rs 10 billion, NT is lending Rs 6 billion, RBS and CIT Rs 2 billion each, and the government is lending Rs 11.8 billion to the hydro power project.

NT, CIT and RBS are also the shareholders in the ambitious hydro power project billed as the cheapest hydro power project. NEA has, on behalf of Upper Tamakoshi Hydropower Company Ltd, signed an agreement with NT, CIT and RBS to share 30 per cent of the total cost of the project on Monday as promoters.

According to the revised equity structure, NEA will have 40 per cent, NT six per cent, RBS and CIT two per cent each, depositors of Employees Provident Fund (EPF) 18 per cent, locals of Dolakha district 10 per cet, general public 15 per cent, employees of Tamakoshi Hydroproject and NEA four per cent and the employees of the lending agencies will get three per cent shares.

In view of new regulations from the Securities Board of Nepal (Sebon), the company has revised the equity structure. The new regulation says that a hydro power company must float at least 15 per cent shares to public.

Meanwhile, the NT board of directors held a meeting yesterday and nominated its managing director Amar Nath Singh on the board of Upper Tamakoshi Hydropower Company.

The 456-MW Upper Tamakoshi hydro power project will cost Rs 35.29 billion, if it is completed on time, that is, by 2014-15.